The study builds on the concepts, ideas and mechanisms suggested in a previous study funded by the European Commission (EC).

It will start by a preliminary clarification of orientations aiming at ensuring those stakeholder’s objectives and preoccupations regarding a potential scheme for shock absorbing finance in the case of large exogenous shocks in the ACP (and possibly other developing countries).

It will bring details on the mechanisms as well as on its institutional set-up, taking into account the revised legal framework (ACP-EC Partnership Agreement and rules governing the European Development Fund and EU Budget) and should lead to practical recommendations on implementation.